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Mmh, indeed strange. Never tried this, though, as we use stereo all the time. Might be worth investigating.
Our company uses FLVs for e-classroom training. We use a mono soundtrack instead of stereo to reduce the audio bitrate by half, thereby saving a total of up to 20% on bandwidth. But this seemingly can't be done in Ae CS3.
I get the same results. I've got AE CS4 here, too, and the bug is fixed in that version.
So it seems that this is indeed a bug in Ae CS3, which fortunately wasn't propagated in CS4.